Reflection of Insensitivity

Finance Minister Pranab Mukherjee’s avowal advice for people not to be baffled by the inflation is startling to say the least. The escalating prices may not be an issue of grave concern for the ruling alliance members, but they should at least be considerate towards people who are bearing the brunt of the frequent rise in rates of essential commodities. It is not justified that while people are struggling to manage their daily expenses due to inflation, they are being given a sarcastic advise to remain unperturbed by the present scenario. If the Union government is unable to the check the price hike, it should adopt a sensitive approach while offering edification to the masses. The Finance Minister has not only validated the price hike rather quipped to point out that at one time the inflation rate had shot up to 16 percent and 20 percent consequently. One fails to understand the logic behind this example? Is he trying to say that the people should remain prepared to face this inflation rate? Finance Minister has recently said development is supplementary to inflation and he added that development would automatically lead to inflation, which means there is no respite in offing for the people. Development is likely to prolong the process to control the inflation rate, but it should not be used as a shield to prove that the efforts to check inflation rate would hamper the nation’s development.

If the Finance Minister is to be believed the hike in crude oil rate is mainly accountable for the inflation, nonetheless, it cannot be overlooked that in the past the Centre had held several other factors responsible for the price rise. In the past scanty rainfall in monsoon and poor agricultural produce were considered factors for the inflation. Though the rate of crude oil in the international market plays a pivotal role in increasing the inflation rate at some stage, the big question remains why do the policy makers in the Government do not have a solution to this problem. Apart from the soaring inflation rates and the failure of Union Government to place a check on it, another major issue of prime concern is that the Centre’s unwillingness to try some unconventional measures to tackle the situation. Whenever there is a rise in inflation, the Reserve Bank increases the interest rate. In the past 18 months, the interest rates have been raised on 11 occasions. It appears the financial policy makers of the country are unwilling to come to terms with the basic fact that price hike especially food inflation will adversely affect the supply of edible items. The supply is often disturbed due to low production, shortage of storage or irregularities in the distribution system. Indian economic policy makers should be well-versed with the fact that no one takes loan to purchase food products. Therefore, it is clear that an increase in interest rate cannot solely check the soaring price graph. If the Centre has failed to check the inflation rate, then why such assurances are being made off and on?